New Delhi: A historic agreement was sealed today between India and the European Union. According to the information, this huge deal was executed after long negotiations. It is also being called ‘Mother of All Deals’. Let us tell you, India and the European Union together account for about one-fifth of the world trade and about 25 percent of the world’s population, which shows the growing economic and strategic importance of this partnership.
Press conference of PM Modi and both European leaders
Both the leaders of India and the European Union are currently making the official announcement of the agreement through a press conference. PM Modi told that European Union leader Antonia Costa is called Gandhi of Lisbon. Earlier, PM Modi said that we have created a free trade zone of two billion people, which will benefit both the parties. He said that we will further strengthen our strategy. PM Modi further said that this is a blue print of shared prosperity. Stability will be further strengthened. He further said that this is not just a trade agreement. There was a long discussion between PM Modi and the two leaders of the European Union in Hyderabad House.
PM Modi said that everyone will benefit from this deal and defense companies will get new opportunities. Agriculture and clean energy will get strength. Along with this, many global issues were also discussed. Earlier, Prime Minister Narendra Modi said on Twitter, ‘Yesterday a big agreement was signed between the European Union and India. People are calling it ‘Mother of All Deals’. This agreement will bring big opportunities for the people in India and Europe. This is a perfect example of partnership between two big economies of the world. This agreement is 25 percent of global GDP and 1/3 of global trade.
Antonio Costa expressed happiness
At the same time, European Union President Antonio Costa expressed happiness over the agreement reached between the two. He said that the agreement is a historic moment. This will provide new opportunities. Antonio Luis Santos da Costa further said that I am the President of the European Council, but I am also an Overseas Indian Citizen. So, as you can imagine, it has a special meaning to me. I am very proud of my roots in Goa, where my father’s family came from, and the connection between Europe and India is personal to me. European Council President Antonio Costa said that thank you, dear Prime Minister Modi, for welcoming us on this special occasion. On Monday, we got the opportunity to be your chief guest for the Republic Day celebrations. It was a great display of India’s capabilities and diversity. Today is a historic moment. We are starting a new chapter in trade, security and people-to-people relations.
The Prime Minister further said, ‘This agreement strengthens our shared commitment to democracy and rule of law. This free trade agreement with the European Union will also complement the agreements of Britain and EFTA. I congratulate the people of the country for this.
PM Modi said, this trade deal with the European Union will give a big boost to manufacturing and the services sector will also grow. Free trade agreement will increase the confidence of every investor and businessman to invest in India.
The European Union and India are close partners working to promote economic prosperity, a rules-based international order and sustainable development. Trade and investment remain the main pillars of this relationship. At the EU-India summit on Tuesday, leaders from both sides are expected to adopt a joint comprehensive strategic agenda and discuss trade in the context of the ongoing free trade agreement negotiations. It was first launched in 2007 and was relaunched in 2022 and ended on Monday.
Talking about the upcoming deal, European Commission President Ursula von der Leyen said, ‘India and Europe have made a clear choice.’ The choice of strategic partnership, dialogue and openness. Capitalizing on our complementary strengths and building mutual strength. We are showing a fragmented world that another path is also possible.
European Council President Antonio Costa also reiterated the same point and said, ‘India is an important partner for the European Union. Together we share the ability and responsibility to preserve the rules-based international order. The European Union is India’s second largest trading partner in goods trade, just behind China and ahead of the US, accounting for 11.5 percent of India’s total goods trade.
According to official data, the trade in goods between European Union and India in 2024 was more than 120 billion euros. This included import of European Union from India worth 71.4 billion Euro and export of European Union to India worth 48.8 billion Euro.
In the last ten years, trade in goods between the two countries has doubled. During this period, EU’s imports from India increased by 140 percent, while EU’s exports to India increased by 58 percent, which shows the continuous growth in commercial relations.
The main goods exported from the European Union to India include machinery and appliances, transport equipment and chemicals. On the other hand, the European Union mainly imports machinery and appliances, chemicals and fuel from India.
Good growth has also been seen in services trade. In 2024, the trade in services between European Union and India was more than 66 billion euros, of which European Union imports were more than 37 billion euros and European Union exports were about 29 billion euros.
In the last ten years, trade in services between the two countries has more than doubled, with an increase of 243 per cent. The main services traded between India and the European Union include telecommunication, computer and information services, other business services such as professional and management consulting, and transport services.
Foreign Direct Investment (FDI) further shows the depth of this relationship. The value of European Union foreign direct investment in India in 2024 was more than 132 billion euros, making the European Union the largest investor in the country.
In terms of policy, the European Union and India resumed negotiations for a Free Trade Agreement (FTA) in June 2022. At the same time, separate negotiations were initiated on investment protection and geographical indications. The purpose of trade talks is to remove barriers and this will help in further increasing exports and opening up services.